Promoting growth of IT industry

By DA NANG Today / DA NANG Today
January 04, 2022, 11:34 [GMT+7]

Over the past 25 years, information technology (IT) industry has gradually affirmed its position and important role in promoting Da Nang’s growth. By securing its leading position for 12 years in a row in the Viet Nam ICT Index - the rankings on the readiness for information and communications technology (ICT) development and applications, the city and its business community have been making efforts to lay the foundation of the IT and hi-tech industries, thereby creating a premise for step-by-step implementation of comprehensive digital transformation.

Thanks to its open policies and convenient administrative procedures, Da Nang has attracted many software and information technology enterprises. IN THE PHOTO: IT engineers are seen working at the Da Nang branch of the Axon Active Vietnam Co., Ltd. Photo: THU HA
Thanks to its open policies and convenient administrative procedures, Da Nang has attracted many software and information technology enterprises. IN THE PHOTO: IT engineers are seen working at the Da Nang branch of the Axon Active Vietnam Co., Ltd. Photo: THU HA

Taking the lead in digital transformation

One of the brightest spots of Da Nang's IT industry is that the city has secured its leading position for 12 years in a row in the Viet Nam ICT Index from 2009 until present.

The positive result is mainly attributed to the city's great efforts in developing and promoting the IT application, and building e-government, especially the drastic and continuous direction of the city's leaders.

Deputy Director of the municipal Department of Information and Communications Tran Ngoc Thach remarked, in 2014, Da Nang completed and put into operation the main items of its e-Government Information System according to World Bank standards. Included were dedicated internet access services, data centers, public Wi-Fi networks, public service centers, online training centers, e-government platform, online public services, and some specialized applications.

Besides, Da Nang has started its journey to becoming a smart city since 2018. A smart city strategy was developed in January 2018 with a focus on implementing the IT application into 16 priority aspects under six key pillars, namely smart governance, economy, environment, mobility, living, people, with each being important in its own way.

In late 2018, the municipal government gave the green light to the implementation of the ‘Building a Smart City’ project for the 2018 - 2025 period, with a vision towards 2030.

Under the project, by 2030, the city will have completed the building of a smart city connected with the networks of smart cities in the country and in the Association of Southeast Asian Nations (ASEAN) region.

According to Mr. Dang Ngoc Hai, General Secretary of the Da Nang Software Business Association, following its amazing Vietnam ICT Index results, Da Nang topped the Digital Transformation Index (DTI) rankings in 2020 at provincial and city levels in all three key pillars of digital government, digital economy and digital society.

“The main reason is thought to be the tremendous efforts and strong determination made by the city's leaders and people over the past years, and the city’s right direction in identifying IT - communication sector as one of the three strategic breakthroughs for its economic and social development strides” added Mr Hai.

He explained another reason is that, over the past decade, Da Nang has actively developed a synchronous IT and telecommunications infrastructure, as well as built and constantly perfected a system of shared databases including background databases and specialized databases. This is a key condition to help Da Nang speed up the deployment of application systems for its digital transformation progress.

CEO cum founder of Enouvo Group Tran Hanh Trang said that the aforementioned results were thanks to the timely issuance of appropriate policies and plans by the municipal government to promote the development of digital technology enterprises in the city.

“Aside from quality human resources, Da Nang has open and transparent mechanisms, policies and administrative procedures that are favourable for businesses to develop without too large investment capital. It can be said that these are the reasons why an increasing number of foreign IT enterprises decide to invest in Da Nang in recent years" said Ms. Hanh Trang.

City always accompanies businesses

With the high vision and determination of the local government, the city has focused on investing and gradually perfecting the infrastructure in the serve for investment promotion activities in the fields of high-tech and IT.

Currently, the city is home to 3 IT parks and Software Parks. In particular, the Da Nang Software Park with an occupancy rate of 100% has nearly 2,000 IT workers. Covering an area of 33ha in the Da Nang FPT Technological Urban Area (FPT City Da Nang), the FPT Complex Da Nang has become main headquarter of the FPT Software Da Nang with nearly 3,500 IT engineers. The 131ha Da Nang Concentrated IT Park, which was put into use in April 2019, has attracted 2 investment projects.

Also, on October 10, work started on the Da Nang Software Park No 2, which facades onto Nhu Nguyet Street, Thuan Phuoc Ward, Hai Chau District.

The VND799 billion new development is one of Da Nang's key projects highly promised to drive the development of the Da Nang software industry to ‘fly high and far’, hereby making the information technology (IT) industry play the key driver of Da Nang's growth in the time to come.

Up to now, 56% of the construction work has been already completed. The construction of office building blocks is underway, and it is expected to be completed and put into use this year.

Thanks to well-invested infrastructure, Da Nang has emerged as a magnet for many IT and software manufacturing enterprises. Apart from large corporations, many foreign investors have chosen Da Nang to get their own startups. For instance, 2021 marked the 10th anniversary of the Axon Active Vietnam Co., Ltd. to build a software manufacturing center in Da Nang.

As one of the few foreign-invested companies to have accompanied the city during the development of the software industry, Mr. Dang Ngoc Hai, the Director of the Da Nang branch of the Axon Active Co., Ltd., feel honoured and proud to be supported by the city government and recognized for its positive contributions in the development process. This is one of the first companies to have deployed a training cooperation model with universities in the city, thereby significantly contributing to improving the quality of human resources in the IT field.

Mr. Tran Ngoc Thach said that Da Nang has set a vision in digital transformation, aiming to be in the group of 3 leading localities nationwide in digital transformation, e-commerce, and information security.

The city has also identified 8 priority areas for digital transformation, including: healthcare, education and training, finance and banking, hi-tech agriculture, transportation and logistics, energy, environmental resources, and industry and tourism manufacturing.

In an effort to continue to create momentum for the development of the IT industry and the digital economy, Da Nang is appealing for investment into some key projects.

Notable among the 22 large land plots are the Creative Space project in Hoa Xuan Ward, Cam Le District with an adjusted planning area of 172,980 m2, and a 24,452m2 housing service area in the first stage of the Software Park No. 2.

Simultaneously, the city will call for organizations and enterprises to invest into infrastructure to serve the development of the information and communication industry such as VNPT Group’s 3.5ha Da Nang Bay IT Park, and Viettel Group’s 1.1ha Software and Hi-Tech Center.

Also, importance will be attached to training high-quality IT human resources which play a vital role in enhancing the quality of any company’s products, and promoting its competitiveness, as well as determining its long-term development strategies.

Reporting by THU HA - Translating by M.DUNG